Sugarcane farming linkages: Unlocking resources for sustainable development

Foundation from off-take and direct support policies

Amid numerous price volatilities in the agricultural market, ensuring stable incomes for sugarcane growers is a top priority for both local authorities and the business community. In Khanh Hoa Province, close linkages between farmers and major sugar mills such as Agris Ninh Hoa Import-Export JSC and Viet Nam Sugar JSC are proving remarkably effective through practical support policies.

According to Mr. Nguyen Thanh Binh, Chairman of the Tay Ninh Hoa Commune People's Committee, the current purchase price for raw sugarcane is maintained at VND 1 million/ton (10 CCS). Including direct support on prices and transportation costs of around VND 70,000/ton, the actual total purchase value received by farmers reaches VND 1.07 million/ton. This is nearly equivalent to the price in the previous crop, helping farmers secure a reasonable profit after a year of hard work.

To encourage farmers to expand production, the sugar mill is implementing a range of highly attractive incentive and support policies. For newly converted sugarcane-growing areas, investment support of up to VND 9 million/ha has significantly eased the financial burden on farmers.

In particular, the mill has introduced incentive bonuses for farmers who fulfill their contracts effectively. Specifically, farmers receive a bonus of VND 12 million/ha for plant cane if yields reach 60 tons/ha or more and VND 3 million/ha for ratoon cane when yields reach 50 tons/ha or more.

Besides, sugar mills are proactively providing advance investments, from fertilizers and pesticides to land preparation and seedlings, helping farmers feel secure in input supplies. Mr. Nguyen Duc Thuan, Director of the Khanh Hoa Sub-Department of Crop Production and Plant Protection, said that with average sugarcane yields expected to reach around 62 tons/ha, farmers' average gross income is estimated at VND 60-62 million/ha.

After deducting costs, profits from plant cane are only around VND 3-5 million/ha due to very high initial investment costs. By contrast, ratoon cane can generate profits of VND 20-30 million/ha, depending on the level of investment in crop care. This reality confirms that participating in production linkages is key to addressing the long-standing challenge of “good harvest, bad price” that farmers faced in the past.

Strategic planning and varietal renewal

Despite these positive results, Khanh Hoa province is synchronously implementing a range of strategic solutions to ensure sustainable development of the sugar industry amid the challenges posed by climate change. The top priority at present is a revolution in sugarcane varieties.

In Tay Ninh Hoa commune and many other localities, authorities are coordinating closely with sugar mills and the Sugarcane Research Institute to gradually replace old varieties with new ones that offer outstanding yields and high sugar content.

Mr. Nguyen Thanh Binh, Chairman of the Tay Ninh Hoa Commune People's Committee, said that through coordination between the commune People's Committee, sugar mills, and the Sugarcane Research Institute, the locality is currently maintaining and replicating key varieties suited to local soil conditions, such as KK3, K95-156, and SRDC2. The relevant units are also restoring several old varieties with high genetic purity, such as My-5514 and KK3, to diversify the varietal sources.

In addition to varietal development, upgrading the irrigation system is a key task to unlock production resources. According to Mr. Nguyen Duc Thuan, Director of the Khanh Hoa Sub-Department of Crop Production and Plant Protection, the provincial agriculture sector is encouraging farmers to gradually invest in modern irrigation systems to ensure water supply and minimize risks associated with dependence on rainfall.

Sugarcane areas with low production efficiency will be reviewed for conversion to more suitable crops, while key sugarcane-growing areas will receive concentrated investment to closely align raw material supplies with the processing capacity of sugar mills. The development of cooperative groups and cooperatives is also being promoted to organize production on a concentrated, large-scale basis, enabling farmers to more easily apply mechanization and advanced intensive farming practices.

With a long-term vision, Mr. Thuan affirmed that the province's sugarcane development strategy will not stop at producing raw materials. The sugar industry is moving toward greater added value by diversifying downstream sugar products and fully utilizing by-products to enhance competitiveness.

At the same time, the "4 years of sugarcane - 1 crop of other crops" rotation model is being actively encouraged to improve soil health and maintain a sustainable agricultural ecosystem. In addition, businesses' commitments to price insurance and support for fertilizers, seedlings, and mechanization will provide further incentives for farmers.

A long-time sugarcane grower shared, "The practical support policies from the sugar mill have not only improved our income but also given us the confidence to continue production." The synergy between corporate responsibility and government policy direction is helping Khanh Hoa’s sugarcane industry develop sustainably.

According to the Khanh Hoa Sub-Department of Crop Production and Plant Protection, the province had nearly 10,000 ha of sugarcane in the 2025–2026 crop year. Regarding the harvest, sugarcane output in March 2026 was estimated at 195,600 tons, exceeding the target of 110,000 tons by 77.8%. In the first quarter of 2026, total sugarcane output across the province reached 330,000 tons, equivalent to more than 137% of the set target.

$1 = VND 26,460 - Source: Vietcombank.